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Consolidation: cutting traffic and waste
Hana Loftus, 13 Feb 07
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The term 'consolidation centre' may not sound sexy, and little about the contemporary construction industry is. But in London a pilot program has found that managed consolidation of delivery operations can cut construction-related vehicle emissions by 70%, and cut waste by a huge percentage too. Pretty impressive? Even more so when you consider the simplicity of the idea.

A consolidation centre enables the efficient delivery of construction materials from supply chains to actual on-site points of use. Rather than have bulk materials delivered from all over the place -- a process during which around 50% of materials end up landing in the wrong place at the wrong time and then sit around waiting to be used, getting damaged and wasted in the process -- a consolidation centre acts as a receiving house for bulk deliveries for a group of sites, from which they can then be 'picked' into efficient truck-loads and delivered to site on a 'just-in-time' basis, thus reducing vehicle movements, cutting waste, saving time and money. What's more, the distance from the consolidation centre to the sites it serves is small enough to make green fuel sources an option for that last stage of delivery.

A recent pilot in London, serving five major city centre development sites, set itself the ambitious targets of reducing vehicle movements by 40%. Its year-end evaluation revealed that the project had far exceeded its target. It cut vehicle miles by 67%, and achieved massive efficiency savings with 97% of deliveries in the right place at the right time compared to the 50% industry average. This led to a staggering 47% cut in materials-related productivity as workers didn't waste time looking for their stuff, major reduction in packaging waste and damage to materials, and it caused site managers to stop over-ordering materials in order to compensate for wastage. All the deliveries from the centre to sites were made by LPG or biodiesel-powered trucks.

There are still some issues to be ironed out, in particular dealing with the challenge of long-term management beyond the subsidized pilot, which could either be done by the property developers, a separate logistics firm, or the suppliers themselves who saved an average of two hours per delivery. But the project director says that it would only need one more major project to use the centre for it to be sustainable without subsidy.

This idea is actually one that originated in retail logistics as a way to manage just-in-time delivery, but it's become a read winner for the construction industry given the level of waste and quantity of deliveries it requires. A version of the concept for the retail sector at Heathrow airport has been running for some time and resulted in similarly impressive savings in emissions and waste; this and others are now running unsubsidized. It's a simple, effective, economical, and environmentally responsible model that could easily be picked up and used in other locations and industries.

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Comments

Hana,
would this be similar to an "intermodal distribution center", i.e. facilitating the movement of goods between modes such as trucks, rail, and/or ships? Or is it something different, more local, small scale, and temporary?
I'm excited by the numbers related to efficiency gains, and I'm just wondering if there are particular aspects of this project that could or could not be applied to larger distribution/intermodal centers.

-Foster


Posted by: foster on 13 Feb 07

The idea definitely has links to intermodal centres but the point is to try and make it more local and specific to places that are dense and suffer severe congestion. As I understand it, long-distance freight right now is pretty efficiently planned by highly complex computer programs to ensure that every ship, train, truck etc is used to its maximum and most efficient capacity to save time and cost. Visiting some intermodal sites in the UK it is amazing to see how the containers are stacked etc very precisely.

For me this idea is more about the many smaller deliveries that are made to customers, from many different suppliers, all of whom have white vans or trucks running around town half-empty, while your doorbell rings for the delivery guy ten times a day rather than once, and half the time he's got the wrong address. And that idea working at all scales up to a building site, large business, hospital, etc.


Posted by: Hana Loftus on 15 Feb 07



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